GST exemption for fisheries items required fresh consideration because the factual basis for exemption could not be finally decided in writ proceedings.

The petitioner's exemption claim under Notification No. 2/2017-CT (Rate) for fisheries items was found prima facie capable of coverage, but the Court said the factual question whether the petitioner actually dealt in exempt goods could not be conclusively determined in writ proceedings. The assessment order and rejection of rectification were therefore not finally set aside on merits; instead, the writ petition was disposed of with directions for compliance with the payment condition, a consolidated reply, and fresh reconsideration by the respondent after hearing the petitioner.

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Issues: Whether the assessment order and the rejection of rectification required interference on the petitioner's claim of exemption under Notification No. 2/2017-CT (Rate) dated 28.06.2017, and whether the matter should be sent back for fresh adjudication.

Analysis: The petitioner challenged the assessment for the relevant assessment year and the subsequent rejection of rectification. The Court noted that, prima facie, the petitioner may be covered by the exemption relating to fisheries items under Serial No. 20 of Notification No. 2/2017-CT (Rate) dated 28.06.2017 and the corresponding State notification. At the same time, the Court held that the factual question whether the petitioner was actually engaged in the sale and supply of exempt items could not be finally decided in the writ proceedings. In these circumstances, the Court found it appropriate to dispose of the writ petition on terms, requiring payment and a consolidated reply, with a direction for fresh consideration by the respondent.

Conclusion: The writ petition was disposed of with a direction to the petitioner to comply with the payment condition and file a consolidated reply, and with a direction to the respondent to pass a fresh order on merits after hearing the petitioner.

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